this post was submitted on 06 Sep 2024
862 points (97.4% liked)

Technology

60052 readers
2865 users here now

This is a most excellent place for technology news and articles.


Our Rules


  1. Follow the lemmy.world rules.
  2. Only tech related content.
  3. Be excellent to each another!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, to ask if your bot can be added please contact us.
  9. Check for duplicates before posting, duplicates may be removed

Approved Bots


founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 2 points 3 months ago (2 children)

What do people mean with "AI bubble"?

[–] [email protected] 9 points 3 months ago (3 children)

The term "AI bubble" refers to the idea that the excitement, investment, and hype surrounding artificial intelligence (AI) may be growing at an unsustainable rate, much like historical financial or technological bubbles (e.g., the dot-com bubble of the late 1990s). Here are some key aspects of this concept:

  1. Overvaluation and Speculation: Investors and companies are pouring significant amounts of money into AI technologies, sometimes without fully understanding the technology or its realistic potential. This could lead to overvaluation of AI companies and startups.

  2. Hype vs. Reality: There is often a mismatch between what people believe AI can achieve in the short term and what it is currently capable of. Some claims about AI may be exaggerated, leading to inflated expectations that cannot be met.

  3. Risk of Market Crash: Like previous bubbles in history, if AI does not deliver on its overhyped promises, there could be a significant drop in AI investments, stock prices, and general interest. This could result in a burst of the "AI bubble," causing financial losses and slowing down real progress.

  4. Comparison to Previous Bubbles: The "AI bubble" is compared to the dot-com bubble or the housing bubble, where early optimism led to massive growth and investment, followed by a sudden collapse when the reality didn't meet expectations.

Not everyone believes an AI bubble is forming, but the term is often used as a cautionary reference, urging people to balance enthusiasm with realistic expectations about the technology’s development and adoption.

[–] [email protected] 16 points 3 months ago (1 children)

The fact that you used AI to write this is... perfection.

[–] [email protected] 3 points 3 months ago

What?! Of course I didn't! You're imagining things!

[–] [email protected] 8 points 3 months ago

Not everyone believes an AI bubble is forming

Well, the AI's not wrong. No one believes a bubble is forming, since it's already about to burst!

[–] [email protected] 1 points 3 months ago

Thank you for the explanation

[–] [email protected] 2 points 3 months ago

As in as soon as companies realise they won't be able to lay off everybody except executives and personal masseuses, nVidia will go back to having a normal stock price.

Rich people will become slightly less grotesquely wealthy, and everything must be done to prevent this.